Sprouts Farmers Market (Sprouts Farmers Market) Operating Income

: $390 Mil (TTM As of Dec. 2023)

View and export this data going back to 2013. Start your Free Trial

Sprouts Farmers Market's Operating Income for the three months ended in Dec. 2023 was $75 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $390 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Sprouts Farmers Market's Operating Income for the three months ended in Dec. 2023 was $75 Mil. Sprouts Farmers Market's Revenue for the three months ended in Dec. 2023 was $1,699 Mil. Therefore, Sprouts Farmers Market's Operating Margin % for the quarter that ended in Dec. 2023 was 4.41%.

Good Sign:

Sprouts Farmers Market Inc operating margin is expanding. Margin expansion is usually a good sign.

Sprouts Farmers Market's 5-Year average Growth Rate for Operating Margin % was 6.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Sprouts Farmers Market's annualized ROC % for the quarter that ended in Dec. 2023 was 7.68%. Sprouts Farmers Market's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 13.66%.

Sprouts Farmers Market Operating Income Historical Data

The historical data trend for Sprouts Farmers Market's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sprouts Farmers Market Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

224.62

391.30

338.75

369.39

389.51

Sprouts Farmers Market Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Operating Income																69.86	129.80	94.04	90.83	74.84

Sprouts Farmers Market Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $390 Mil.

Sprouts Farmers Market (NAS:SFM) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Sprouts Farmers Market's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	299.352 * ( 1 - 27.47% )	/	( (2779.22	+	2875.971)	/ 2 )
=	217.1200056	/	2827.5955
=	7.68 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	3290.508	-	432.282	-	( 251.78	-	max(0, 541.545	-	620.551	+	251.78	))
=	2779.22

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	3327.428	-	394.554	-	( 201.794	-	max(0, 546.869	-	603.772	+	201.794	))
=	2875.971

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Sprouts Farmers Market's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	286.176	/	( ( (2067.342 + max(-63.511, 0))	+	(2121.561 + max(-41.147, 0)) )	/	2 )
=	286.176	/	( ( 2067.342	+	2121.561 )	/	2 )
=	286.176	/	2094.4515
=	13.66 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(16.203	+	323.662	+	28.906)	-	(432.282	+	0	+	0)
=	-63.511

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(30.313	+	323.198	+	24.908)	-	(394.554	+	0	+	25.012)
=	-41.147

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Sprouts Farmers Market's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	74.838	/	1698.545
	=	4.41 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Sprouts Farmers Market Operating Income Related Terms

Thank you for viewing the detailed overview of Sprouts Farmers Market's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Sprouts Farmers Market (Sprouts Farmers Market) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Sprouts Farmers Market Inc (NAS:SFM) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

1FA:Germany 1FA:Germany

Address

5455 East High Street, Suite 111, Phoenix, AZ, USA, 85054

Website

https://www.sprouts.com

Sprouts Farmers Market is an American specialty grocer offering an assortment highlighting fresh and naturally derived products. Its offerings are especially focused on produce, which constituted around 20% of sales in fiscal 2022. Founded in 2002, the chain is most heavily concentrated in California, which accounted for over one third of its 386 stores as of the end of fiscal 2022. All of the company's operations are in the United States, with its stores largely located in the southern half of the country. Private-label products accounted for nearly 20% of sales in fiscal 2022.

Executives

Brandon F. Lombardi	officer: Chief Legal Officer	11811 N. TATUM BOULEVARD SUITE 2400, PHOENIX AZ 85028
David Mcglinchey	officer: Chief Merchandising Officer	5455 E. HIGH STREET, SUITE 111, PHOENIX AZ 85054
Douglas Gregory Rauch	director	54 WILDE ROAD, WABAN MA 02468
Joseph L Hurley	officer: Chief Supply Chain Officer	5455 EAST HIGH STREET, SUITE 111, PHOENIX AZ 85054
Jack Sinclair	director, officer: Chief Executive Officer	800 WEST 1ST STREET, APT. 2308, LOS ANGELES CA 90012
Lawrence Molloy	director	19601 N 27TH AVENUE, PHOENIX AZ 85027
Stacy W. Hilgendorf	officer: VP, Controller	14624 N. SCOTTSDALE ROAD, SUITE 300, SCOTTSDALE AZ 85254
James H Bahrenburg	officer: Chief Technology Officer	5455 EAST HIGH STREET, SUITE 111, PHOENIX AZ 85054
Kim Coffin	officer: SVP, Chief Forager	5455 EAST HIGH STREET, SUITE 111, PHOENIX AZ 85054
John Scott Neal	officer: Chief Fresh Merchandising Off.	5455 EAST HIGH STREET, SUITE 111, PHOENIX AZ 85054
Timmi Zalatoris	officer: Chief Human Resources Officer	5455 EAST HIGH STREET, SUITE 111, PHOENIX AZ 85054
Nicholas Konat	officer: President & COO	10850 VIA FRONTERA, SAN DIEGO CA 92127
Dan J Sanders	officer: Chief Operations Officer	5455 E. HIGH STREET, SUITE 111, PHOENIX AZ 85054
Alisa Gmelich	officer: SVP, Chief Marketing Officer	5455 EAST HIGH STREET, SUITE 111, PHOENIX AZ 85054
Hari K. Avula	director	5455 EAST HIGHT STREET, SUITE 111, PHOENIX AZ 85054